Pre-Nuptial agreement victory may pave way for contracts to become legally binding

Rhian Jervis, our newly appointed Solicitor in our Family Department believes that Radmacher v Granatino is a landmark case and is likely to be particularly important for the future judicial treatment of pre-nuptial agreements. Rhian states that a Court of Appeal ruling over a divorced couple's pre-nuptial agreement could pave the way for such contracts to become legally binding in the UK.

"The german paper industry heiress, Katrin Radmacher and her ex-husband, French investment banker Nicholas Granatino, signed a pre-nuptial agreement providing that neither would have a claim on the other's assets in the event that the marriage broke down" says Rhian.

"Pre-Nuptial Agreements are enforceable in both France and Germany, but in English courts, are one of many considerations to be taken into account when dealing with the division of matrimonial assets.

"This was the stance taken by the High Court resulting in Miss Radmacher paying her ex-husband £5.8 million of her £100m fortune, contrary to the terms of their Agreement. Miss Radmacher fought against this ruling and won her case at the Court of Appeal, which upheld the terms of the pre-nuptial agreement as it was the decisive factor in the case."

Rhian said of the case "this unanimous decision of the Court of Appeal adds significant weight to the validity and enforceability of pre-nuptial agreements in English courts, paving the way towards the contracts becoming legally binding. Those wishing to protect their assets against the financial risk of divorce should view pre-nuptial agreements as an increasingly valuable tool and take encouragement from this latest development."

For more information about Higgs & Sons' Family department please contact Rhian Jervis on 01384 342100.

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